PUBLISHER: Bonafide Research | PRODUCT CODE: 1341936
PUBLISHER: Bonafide Research | PRODUCT CODE: 1341936
The term "biometrics" refers to procedures used to verify, identify, and recognize people based on their physical or behavioral traits. They compare a person's identification information to their biometric template that is already saved in the database. Physiological and behavioral traits are the two categories into which biometric IDs fall. Hand geometry, DNA, iris, retina, and fingerprints are examples of physiological qualities. Typing patterns, voice recognition, and signature recognition are examples of behavioral characteristics. Traditional security and identification measures like ID cards or pin systems are replaced by biometrics. Biological data is transformed into digital data via a biometric system so it can be used for identification. Benefits of biometric systems include physical presence being required for access as opposed to other forms of identity that can be stolen or faked, quick integration and deployment, robust security, and simplicity of use. Biometric systems are becoming increasingly important to daily security. These distinctive identity traits of people can be used as passwords for phones, laptops, and computers as well as to enter buildings and rooms. Once this biometric information has been scanned, it is then stored for use in matching processes in subsequent tries. Most of the time, biometric information is encrypted and saved on a remote server or directly on the device. Hardware used to scan and collect all biometric data for identification and verification includes biometric scanners and sensors. For all consumer electronic devices, the biometric system is a reliable basis for digital identification services. Recent years have seen a rapid expansion of consumer biometric applications due to the increased use of mobile devices. Due to the widespread use of biometric systems, security and access control equipment dominates the consumer electronics market. For instance, famous messaging software WhatsApp recently included an additional privacy feature on the Android operating system. According to the corporation, users will soon be able to employ fingerprint sensors for biometric authentication to secure their accounts.
According to the research report, "Global Biometric Systems Market Outlook, 2028" published by Bonafide Research, the market is anticipated to cross USD 105 Billion by 2028, increasing from USD 41.78 Billion in 2022. The market is expected to grow with 17.02% CAGR by 2023-28. A sizable global market for biometric devices and applications has emerged as a result of widespread adoption and an increase in deployment. The demand for components, hardware, software, and services is expected to rise as more and more deployments take place. The creation of a service delivery network, effective supply chains, and mass production of biometric equipment hardware and spare parts are all necessary to meet this demand. A significant potential exists for organizations and professionals thanks to the growing demand for biometric technology. Larger firms are probably going to start doing biometric commerce to take advantage of this possibility. Price competition is anticipated to heat up as bigger, better-capitalized firms enter the market. These players will be able to make significant investments, which will boost competition and benefit customers. A biometric ecosystem made up of integrated identification and authentication services is starting to emerge as a result of the adoption of biometric equipment and the growth of biometrics as a service. The global COVID-19 outbreak has had a significant impact on businesses all around the world. Biometric technology was very useful following the pandemic. People started wearing masks during the epidemic, which made it challenging for biometric technology devices to identify the wearer.
In order to improve government screening, monitoring, and protection, this led to the advancement of noncontact technology like face and iris recognition. The pandemic has aided firms in quickly mobilizing and making both short-term and long-term modifications to their business models with regard to the sales and distribution capacities of their product offering. Global supply networks were affected as the disease swept over the world, and uncertainty about the length of the quarantine had an effect on sales. In addition, the outbreak accelerated the uptake of digital services across the board. The precautionary expenditures made in contactless biometric technology systems by developed and emerging nations alike are, however, expected to help the biometric technology market recover throughout the course of the forecast period. In order to enhance data flows, the EU adopted interoperability standards for multi-model biometric systems in August 2021. If the identification information for which a search was conducted is present in more than one information system, the Multiple identification Detector (MID) database checks a range of other databases to determine this. Biometrics, which confirms identity, based on bodily traits such the face, iris, fingerprints, palm prints, and voice, are being included into ID databases in a number of countries. For instance, the Singaporean government declared in September 2020 that its national identity program would incorporate facial verification. Secure access to both public and private services will be made available to citizens thanks to the biometrics validation. Additionally, the Indian government suggested using biometrics to identify people in e-governance systems. In order to ensure accurate identification of residents, government organizations are concentrating on bolstering their security systems, which will spur market expansion. Gnani.ai, a participant in the conversational AI and voice security space, announced the release of armour365, their vocal biometrics software, in September 2021.
Servers, networks, and other IT infrastructure are required for on-site biometric systems. This infrastructure is pricey and needs upkeep. Since biometric service does not require any specialist IT infrastructure or maintenance for the deployment of a biometric project, it is therefore gaining popularity. Additionally, because biometric service is so scalable, businesses are adopting it. Depending on the size, different businesses have different enrollment rates. Companies can subscribe to services based on their needs thanks to biometric services. Additionally, altering the subscription plan makes it very simple to increase or decrease the number of facilities. Businesses like Aware Inc. and others provide biometrics software as independent suppliers, that is, separate from hardware manufacturers and system integrators. These advantages include the reduction of expenses and hazards related to system maintenance issues, hardware and software obsolescence, and other factors that could compromise a solution's functionality and decrease its useful life.
Government protection, surveillance, and screening are now being expanded thanks to noncontact technology like face and iris recognition. Applications that rely on vein and fingerprint recognition modalities, meanwhile, are experiencing considerable losses. Additionally, because cloud storage is sensitive to shared environments or the general public, it requires a strong authentication and security system, which is what biometric technology offers. The Automated Biometrics Identification System (ABIS), a cloud-based biometric technology, has begun to be adopted by government and law enforcement organizations. As a result, the market for major businesses who provide biometric systems has enormous growth potential. Additionally, significant industry participants have introduced their products based on biometric technology. Suprema, a leader in biometric security and access control, for instance, recently announced the release of an updated model of their X-Station 2 access control terminal that allows fingerprint authentication. Suprema introduced four different types of the X-Station 2 in May 2021, a new kind of "versatile intelligent terminal" that accepts a number of different authentication techniques, including mobile access cards, RFID cards, QR codes, and barcodes. A fingerprint recognition module is included in the most recent X-Station 2 model, giving clients more alternatives. Additionally, people and organizations are becoming more concerned about protecting their assets and personal information due to rising crime and privacy incursion rates. Biometric solutions have gained popularity in the market as a way to offer uniform security through cutting-edge technology.
The global market is segmented into major five regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Asia-Pacific is dominating the market by the end of the forecast period with highest revenue generation. Initiatives integrating face, fingerprint, and eye biometrics, like the UIDAI project in India and the e-KTP electronic ID program in Indonesia, is also anticipated to open up new business prospects. The banking industry has moved forward with replacing traditional systems with biometric systems since many financial institutions have adopted or are presently employing biometric identification technologies. Stricter employee and client identification measures are still needed in the banking industry, which is quickly digitizing, in order to combat fraud and identity theft. Because of these elements, biometric identification has the best chance of becoming a strategic, essential part of global banking security platforms. A trustworthy authentication method that safeguards ATM, in-person, and online transactions while boosting customer confidence and brand reputation is provided by the use of biometrics in banking. Banks have already begun integrating biometric data-based technology to enhance customer experience and strengthen transaction security.
Based on the product types, the market is categorized into fingerprint recognition, face recognition, hand geometry, voice recognition, iris recognition/ retina recognition, signature recognition, vein recognition and others (keystroke dynamics, gait recognition, earlobe geometry & DNA biometrics). Among them, fingerprint recognition is leading the market in 2022 with over 45% market share. Fingerprint recognition is a highly secure form of biometric authentication. Every individual's fingerprint is unique, making it difficult to forge or replicate. This high level of security is especially valuable in applications where personal identification and data protection are crucial, such as accessing devices, online accounts, and physical spaces. Smartphones and other electronic devices are becoming an integral part of people's lives. Fingerprint recognition provides an added layer of security for unlocking these devices, authorizing transactions, and accessing sensitive information. As the reliance on technology grows, so does the demand for secure and convenient access control methods. In addition to that, fingerprint recognition has long been used by law enforcement agencies for criminal identification and investigation. Automated fingerprint identification systems (AFIS) are used to match crime scene prints with those in criminal databases, aiding in solving cases. The same trend is followed by voice recognition segment throughout the forecast period due to increasing use of voice command system in smart homes. Due to increasing use of iris authentication in the government & public and healthcare industries, the iris recognition segment shows notable growth opportunities with the highest CAGR by 2028.
In the biometrics industry, hardware is a crucial component, and market segmentation by hardware segment is a crucial indicator of the sector's explosive growth. The most common biometric traits that are recorded by scanners are voiceprints, iris patterns, face features, and fingerprints. The most popular biometric scanners are face recognition scanners and fingerprint scanners. Due to the increasing use of biometric authentication across numerous industries, the global market for biometrics is predicted to expand quickly. However, there are many applications in the global biometrics market where the software segment is crucial. Using an analysis of their facial traits, face recognition software recognizes people. Algorithms are used by software to recognize distinctive characteristics such the separation of the eyes, nose, and mouth. Iris recognition software also uses a person's individual iris patterns to identify them. An image of the iris is captured by the software, which then compares it to a database of recognized iris patterns. It is frequently employed in time and attendance and access control systems. Additionally, speech recognition software recognizes individuals based on the distinctive features of their voice. Call centers and authentication systems both frequently use this. Voice recognition, behavioral biometrics software, iris recognition, face recognition, fingerprint recognition, and iris recognition all have special advantages and are utilized in various contexts depending on the requirements of the customer. All these factors are expected to grow the software segment during the forecast period.
Based on the functionality, contact-based system segment generated the highest revenue in 2022. This is because the BFSI, consumer electronics, commercial, and smart home industries employ fingerprint scanners extensively. The contact less system market will continue to exhibit this trend during the projected period due to the rising need for contactless operations following the COVID-19 pandemic. Additionally, because hybrid biometric solutions combine the advantages of contact-based and contactless biometric solutions, the hybrid sector will create the considerable CAGR over the course of the projected period. During the anticipated period, the multi-factor authentication sector is anticipated to rule the biometric system market. The increased requirement for enhanced security against the theft of sensitive data, especially in government and defense verticals, is what's being blamed for the rising need for multi-factor authentication. Combining several identities gives an additional layer of security, improving the system's efficiency, accuracy, and dependability. Additionally, failure to enroll (FTE) and failure to capture (FTC) rates can be decreased using a multimodal biometric system. During the forecast period, the need for multi-factor authentication is anticipated to be driven by the quick development of biometric smart cards for identity and payment applications. For check-in at hotels, airports, and sea ports, multi-factor authentication systems like facial recognition and iris verification systems are becoming more widely used. The travel and tourism industry is seeing a growth in the multi-factor authentication area, which is why it earned the most revenue in 2022 and is expected to continue doing so during the forecast period.
The global market is further categorized into government, banking, financial services and insurance (BFSI), military & defense, consumer electronics, healthcare, commercial safety and security, transport/visa/logistics, automotive and others (education, retail & e-commerce, hospitality, industrial and manufacturing, prisons and correctional facilities, non-profit organizations, etc.) Among them, the market share growth by the government segment will be significant during the forecast period. The majority of businesses in this sector employ biometric technologies. Biometric technology is used by governments all over the world for a variety of reasons. To address the growing security concerns, governments around the world have committed to increasing expenditure on security measures and investing more in technology. The use of biometric technology is necessary for a number of government efforts, including the adoption of e-passports and e-visas, the implementation of electoral administration, and the use of biometrics in criminal identification (ID). Additionally, some nations' governments are preparing to issue biometric digital ID cards. One of the main causes influencing the expansion of biometrics is the implementation of biometrics by governments around the world to track the information of their inhabitants. The category is anticipated to propel the expansion of the global biometrics market during the forecast period as a result of these government initiatives. But by the projected period, the consumer electronics segment is anticipated to rise rapidly. The industry is expanding globally as a result of numerous consumer electronics manufacturers choosing biometric solutions for hardware security and data protection.
According to the market, the report is segmented into two mobility types including fixed and portable. Among them, portable segment is leading with over 70% market share by 2028. Smartphones and tablets equipped with biometric sensors are common examples of portable biometric devices. These devices use fingerprint or facial recognition for user authentication and secure access. Police officers and law enforcement agencies can carry portable biometric devices to identify individuals in the field. This can aid in criminal investigations and help officers make informed decisions on the spot. Also, Portable biometric devices can be used in disaster-stricken areas to identify survivors and provide assistance to those in need. However, fixed biometric devices are installed in specific locations and are not easily moved. Fixed biometric devices can be installed at immigration checkpoints in airports, seaports, and land border crossings. They can capture and match travelers' biometric data, such as fingerprints or facial features, against databases to verify their identities and enhance border security. High-security government facilities can use fixed biometric devices for access control. These devices ensure that only authorized individuals can enter restricted areas.
Since many biometric technologies, such finger print scanners, vein recognition technology, and others, require touching of surfaces, the COVID-19 epidemic had a moderate effect on the growth of the biometric technology business. Additionally, during the pandemic, people began using face masks, making it difficult for biometric technology equipment to identify the wearer. Many government organizations also stopped using biometrics. For instance, as a precaution to stop the spread of the coronavirus, the federal government of India suspended the marking of biometric attendance for all of its employees. As a result, less of these gadgets were used because they could spread viruses. However, the demand for numerous biometric technologies such as facial recognition, iris scanning, and others surged because they required no human touch and gave accurate authentication results. As an illustration, Tech5 is supplying its facial recognition technology to Chile's COVID-19 health status verification operations to support active searches through active biometric traceability to stop the spread of the sickness. Additionally, it is being used in a proactive investigation of COVID-19 cases. Workers undergo facial authentication and antigen quick testing once a week to provide health documentation for employers to verify when they arrive at work. As a result, the COVID-19 epidemic had a little effect on the market share of biometric technologies.
M2SYS Technology, Assa Abloy AB, Aware, Inc., Amano Corporation, BioEnable Technologies Pvt. Ltd., BioID, BIO-key International, Cognitec Systems GmbH, Daon, Inc. , Dermalog Identification Systems Gmbh, Ant Group CO., Ltd., Fujitsu Limited, Suprema Inc., Fingerprint Cards AB, Thales Group, Idemia, Idteck, Idex Biometrics ASA, ImageWare Systems, Inc. and NEC Corporation.
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.
This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Biometric System industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.